RIYADH: Bahrain and Oman have agreed to exchange corporate credit information among their business to instill transparency and reduce financial risks.

On Tuesday, Bahrain Credit Reference Bureau, or BENEFIT, signed a deal with Oman Credit and Financial Information Center, also known as Mala’a.

The move is part of a broader strategy to increase connectivity between Gulf Cooperation Council nations, mirroring prior agreements with Saudi Arabia and Kuwait. The focus is to digitally exchange corporate credit data, ensuring it’s accessible to all member countries, according to a press release.

The strategy comes after the Supreme Council of the GCC issued a decision in its 37th annual session in 2016 to approve the exchange of credit information between Gulf countries according to the framework for a mechanism to facilitate the transfer.

The agreement was signed in Muscat between BENEFIT CEO Abdulwahed Al-Janahi and Mala’a Center General Manager Bassam Al-Jamali.

Speaking on the occasion, Al-Janahi remarked on the broader implications of the agreement, emphasizing its potential benefits for Bahrain and Oman, and the entire GCC region.

He highlighted the joint efforts toward refining the credit information sector in the area.

The BENEFIT CEO said: “We are all working toward the important and common goal of enhancing the credit information industry in the region. I can confirm that our rigorous studies of the credit market and the challenges and opportunities surrounding it are ongoing, and this agreement comes as a great milestone in this process.”

Al-Jamali also acknowledged the potential for enhanced collaboration and the establishment of improved communication channels resulting from this agreement. He expressed hope for bolstered support for the banking sector and a more streamlined approach to credit and financial risk management.

Founded in 1997, BENEFIT is owned by banks in Bahrain. The Central Bank of Bahrain regulates it and provides innovative payment capabilities, information management solutions, and business process outsourcing services across different sectors in Bahrain and the region.